Novae Review: $99.95 a month subscriptions
Novae was founded in 2014 and is based out of Georgia in the US.
Pronounced “NÓ-VĀ”, it is the femine meaning of the latin word Novus, which means New, Newness, or New Beginnings.
Coupled with the symbol in the logo, the KORU symbolizes LIFE, GROWTH, and a FRESH START.
Heading up Novae is President and CEO, Reco McDaniel (right).
As the Founder of Novae, Reco McDaniel has made his mark in the industry of Network Marketing as one of the youngest and most successful entrepreneurs in the space.
McDaniel made a name for himself in MLM with Lightyear Wireless. Joining as an affiliate in 2005, McDaniel rose to the rank of Presidential Director before leaving the company in 2009.
A month before he left the company, McDaniel sued Lightyear Wireless. In his lawsuit, McDaniel alleged that Lightyear Wireless was an “illegal pyramid enterprise”.
This is an action to recover damages caused by (Lightyear Wireless)’s willful and malicious breaches of contract and tortious actions done both independently and as an integral part of the operation of an illegal pyramid enterprise.
The illegal enterprise operated by (Lightyear Wireless) is an “endless chain” pyramid that relies on untrue and misleading representations and unlawful, unfair and fraudulent business practices that include violations of federal and state laws.
More specifically, (Lightyear Wireless) induce individuals into investing in products and web-based marketing tools and continuously recruit new victims into the scheme with false promises of extraordinary and legally unsustainable profits.
Lightyear Wireless counter-sued McDaniel a few months later in August.
In October 2009 McDaniel’s lawsuit was dismissed. Lightyear Wireless’ lawsuit appears to have been settled shortly thereafter.
In contrast to McDaniel’s description of Lightear Wireless in his lawsuit, on his LinkedIn profile he boasts:
As a Presidential Director, I procured an organization in access of 28,000 independent representatives nationwide in 3 years and broke numerous company production records.
McDaniel’s departure from Lightyear Wireless saw him immediately sign up with Monavie, a move that lasted only a few months before he left and launched Elite Profit Network.
According to Elite Profit Network marketing material, affiliate membership cost “less than $50” and provided affiliates “the opportunity to run your business”.
Elite Profit Network affiliates were paid to recruit new affiliates, in addition to e-commerce cashback commissions and selling underwear.
According to McDaniel’s LinkedIn profile, Elite Profit Network ceased business in May, 2013.
Sometime after McDaniel’s signed up as a WakeUpNow affiliate.
WakeUpNow was a recruitment-driven scheme launched in 2009. With little to no retail activity taking place, WakeUpNow lost millions of dollars before finally collapsing in early 2015.
A few months before WakeUpNow collapsed, McDaniel left the company and went on to launch Novae.
Read on for a full review of the Novae MLM business opportunity.
The Novae Product Line
Novae market Sprayology and a series of subscription-based “Lifestyle Packs”.
Sprayology is a range of “homeopathic & vitamin oral sprays”.
Novae, in conjunction with Sprayology, offers 23 Homeopathic Formulas that rejuvenate the body, relieve symptoms naturally and work to restore balance to our bodies.
Also, there are 2 vitamin sprays in addition to the 23 homepathic to make a total of 25.
- Rejuvenation Plus – revitalizes the aging body
- Man Power – rejuvenates the male body
- Woman Power – rejuvenates the female body
- Diet Power – supports weight loss
- Brain Power – sharpens the mind
- Meno Power – energizes the menopausal woman
- Bone Builder – enhances calcium absorption
- AllergEase – relieves allergy related discomfort
- Cold + Flu Relief – battles the discomfort of colds + flu
- DigestivEase – relieves stomach distress
- SleepEase – relieves restlessness
- TravelEase – relieves jet lag
- Party Relief – relieves hangovers
- Snore Soother – reduces snoring intensity
- Arnica Power – relieves aches and pains
- Stress Relief – restores calm
- PMS Support – restores cyclical balance
- Life Detoxer – neutralizes daily toxins
- ImmunoBooster – restores natural defenses
- Body Skin Tonic – rejuvenates dry skin
- Acne Tonic – relieves acne
- Hair + Nail Tonic – revitalizes hair + nails
- Body Balance – fights adrenal exhaustion
- B-12 + Folic Acid – energy
- Daily Multi – daily vitamin support
Sprayology products come in a spray bottle and cost $29 each. Multipacks that combine various Sprayology sprays are also available for $70.
Novae’s Lifestyle Packages meanwhile provide access to:
- Novae Money – “allows you to manage your finances more efficiently”
- Novae Personal Security – a security phone app that sends out an alert to “24/7 safety agents” who “listen in and assess the details”
- Novae Fitness – “excercise programs you can (access) from anywhere online”
- Novae Language – “helps you to start speaking immediately using essential words and phrases”
- Novae Identity Theft Protection – “provides you with $25,000 in identity theft insurance”
- Novae Travel – hotel booking engine
- Novae Library – summaries of business books
- Novae Perks – “save money on everything you want to buy”
There are three Lifestyle Packages available:
- Basic Pack (Novae Perks, Novae Library and Taxbot) – $49.95 a month
- Lifestyle (“includes the Basic Pack, Novae Money, Novae Identity Theft Protection and Novae Fitness”) – $99.95 a month
- Lifestyle Plus (“includes the Basic and Lifestyle Pack, Novae Travel, Novae Personal Security and Novae Language”) – $249.95 and then $99.95 a month
- Lifestyle Premium – (Lifestyle Plus membership with ten Sprayology sprays) – $499.95 and then $99.95 a month
The Novae Compensation Plan
The Novae compensation plan guarantees affiliates monthly income.
Weekly retail and recruitment commissions are also available, paid out via a six-level deep unilevel compensation structure.
Novae Affiliate Ranks
There are seventeen affiliate ranks in the Novae compensation plan.
Along with their respective qualification criteria, they are as follows:
- Independent Business Owner – sign up as a Novae affiliate and generate at least 40 PV a month
- Bronze Star – maintain 40 PV and 180 GV a month and personally recruit at least one affiliate
- Silver Star – generate 80 PV and 585 GV a month (no more than 50% from any one unilevel leg), recruit at least three affiliates and maintain at least three qualified unilevel legs
- Silver Star 2 – maintain 80 PV and 2500 GV a month (no more than 50% from any one unilevel leg) and maintain at least three qualified unilevel legs
- Silver Star 3 – maintain 80 PV and 5000 GV a month (no more than 50% from any one unilevel leg) and recruit and maintain at least three qualified unilevel legs
- Silver Star 4 – maintain 80 PV and 7500 GV a month (no more than 50% from any one unilevel leg), recruit and maintain at least four affiliates and have three qualified unilevel legs
- Gold Star – maintain 80 PV and 10,000 GV a month (no more than 50% from any one unilevel leg), recruit and maintain at least five affiliates and have four qualified unilevel legs
- Platinum Star Executive – maintain 80 PV and 20,000 GV a month (no more than 45% from any one unilevel leg), recruit and maintain at least six affiliates and have five qualified unilevel legs
- Double Platinum Star Executive – maintain 80 PV and 40,000 GV a month (no more than 40% from any one unilevel leg), maintain at least six recruited affiliates and have six qualified unilevel legs
- Triple Platinum Star Executive – maintain 80 PV and 80,000 GV a month (no more than 40% from any one unilevel leg), recruit and maintain at least seven affiliates and have seven qualified unilevel legs
- Diamond Star Ambassador – maintain 80 PV and 120,000 GV a month (no more than 35% from any one unilevel leg), maintain at least seven recruited affiliates and have seven qualified unilevel legs
- Double Diamond Star Ambassador – maintain 80 PV and 160,000 GV a month (no more than 35% from any one unilevel leg), maintain at least seven recruited affiliates and have seven qualified unilevel legs
- Triple Diamond Star Ambassador – maintain 80 PV and 240,000 GV a month (no more than 35% from any one unilevel leg), maintain at least seven recruited affiliates and have seven qualified unilevel legs
- Execuive Star Ambassador – maintain 80 PV and 320,000 GV a month (no more than 35% from any one unilevel leg), recruit and maintain at least eight affiliates and have seven qualified unilevel legs
- Royal Star Ambassador – maintain 80 PV and 480,000 GV a month (no more than 35% from any one unilevel leg), recruit and maintain at least eight affiliates and have seven qualified unilevel legs
- Crown Star Ambassador – maintain 80 PV and 640,000 GV a month (no more than 35% from any one unilevel leg), recruit and maintain at least eight affiliates and have seven qualified unilevel legs
- Presidential Star Ambassador – maintain 80 PV and 1,000,000 GV a month (no more than 35% from any one unilevel leg), recruit and maintain at least ten affiliates and have seven qualified unilevel legs
PV stands for “Personal Volume” and is sales volume generated by retail sales and a Novae affiliate’s own purchase of product.
GV stands for “Group Volume” and is PV generated by recruited affiliates.
A “qualified unilevel leg” is one that generates at least 180 GV a month.
Recruitment Commissions
Novae affiliates are paid to recruit new affiliates who sign up with a Lifestyle Pack. A flat figure of $70 is quoted in the Novae compensation plan material.
Residual recruitment commissions are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Novae cap payable unilevel levels at six, with quoted commissions paid out on Lifestyle Plus and Lifestyle Premium packages in the Novae compensation plan material as follows:
- IBO – no residual recruitment commissions
- Bronze Star – $20 on level 1 (personally recruited affiliates)
- Silver Star – $20 on level 1 and $15 on level 2
- Gold Star – $20 on level 1, $15 on level 2 and $10 on level 3
- Platinum Star – $20 on level 1, $15 on level 2, $10 on level 3 and $5 on level 4
- Double Platinum – $20 on level 1, $15 on level 2, $10 on level 3, $5 on level 4 and $3 on level 5
- Triple Platinum – $20 on level 1, $15 on level 2, $10 on level 3, $5 on level 4, $3 on level 5 and $2 on level 6
Other commissions paid out via the above unilevel compensation structure include recruited affiliate purchases of “various other Novae products and services”.
Retail Commissions
Novae affiliates are paid when retail customers purchase Lifestyle Packages and “various other Novae products and services”.
Commissions paid out on retail orders are identical to the recruitment commissions detailed above.
Guaranteed Income
Novae guarantee affiliates monthly income, relative to the sales volume their downline has generated that particular month.
- Silver Star – $250
- Silver Star 2 – $650
- Silver Star 3 – $750
- Silver Star 4 – $1000
- Gold Star – $2000
- Platinum Star Executive – $4000
- Double Platinum Star Executive – $6000
- Triple Platinum Star Executive – $10,000
- Diamond Star Ambassador – $15,000
- Double Diamond Star Ambassador – $20,000
- Triple Diamond Star Ambassador – $25,000
- Executive Star Ambassador – $30,000
- Royal Star Ambassador – $40,000
- Crown Star Ambassador – $50,000
- Presidential Star Ambassador – $110,000
Leadership Lifestyle Bonus
In addition to the above monthly commissions, Gold Star and higher ranked affiliates receive the following monthly Leadership Lifestyle Bonus:
- Gold Star and Platinum Star Executive – $250
- Double and Triple Platinum Star Executive – $500
- Diamond and Double Diamond Star Ambassador – $750
- Triple and Executive Diamond Star Ambassador – $1000
- Royal Star Ambassador – $1500
- Crown Star Ambassador – $2000
- Presidential Star Ambassador – $2500
Joining Novae
Affiliate membership with Novae requires the purchase of an “Opportunity Pack” for $199.95 and then $49.95 a month.
Affiliates can bump this up to $99.95 a month to qualify for MLM commissions.
Conclusion
If WakeUpNow taught us anything, it’s that a subscription-based eclectic mix of products and services has little to no retail appeal.
Novae have swapped out WakeUpNow’s energy drink for homeopathic sprays. Whereas the Thunder energy drink was at least a consumable, Sprayology products seem more a novelty.
Otherwise, there’s not much between the two companies.
The Novae compensation plan reveals that the core idea of signing up as an affiliate, paying $99.95 a month and then getting paid to recruit others who do the same, remains intact.
80 PV obviously corresponds to the $99.95 Lifestyle subscription which, “sales” volume wise, is all that’s required to qualify for MLM commissions.
Recruit three other affiliates who also pay $99.95 a month and your monthly subscription fees are waived.
On paper it’s sold as selling the subscriptions to retail customers, but in practice that doesn’t happen.’
WakeUpNow proved that by collapsing under the crushing weight of its only subscribers being affiliates. Novae might have tweaked the payouts to mitigate revenue losses, but the problem of affiliates likely being the only subscribers remains.
Close to or 100% of subscribers being Novae affiliates constitutes a chain-recruitment scheme. And given how WakeUpNow turned out, I’d be pretty surprised to learn Novae have turned that around.
Apart from its owner being a WakeUpNow affiliate, hallmarks of WakeUpNow are scattered through Novae.
Take for example the oddly specific “don’t do this” items from Novae’s Terms and Conditions
IBOs must never represent that one can be successful without selling products and services and diligently applying themselves.
Examples of misrepresentations in this area include:
• It’s a turnkey system;• “All In” Mentality – okay to encourage someone to go “All-In” for educational purposes and for help in building his or her business.
However, behaviors that are not permitted: “Get All-In sit back and make money,” “Go into debt,” “forego paying your rent,” “sell your car,” “do it or you’ll be removed from the team,” “threats,” “bashing,” “name calling,” or “alienation” in any manner;
• The system will do the work for you;
• Just get in and your downline will build through spillover;
• Just join and I’ll build your downline for you;
• The Company does all the work for you;
• You don’t have to sell anything; or
• All you have to do is buy your products or services every month.
• Get three and you’ll never have to pay again
• You get started and I’ll give you three
• No special enticement advertising is allowed. This includes but is not limited to offers of free membership or other such offers that grant advantages beyond those available through the Company.
Those obviously weren’t just plucked out of thin air.
Props for trying to stamp out the behavior in your own company, but when your business model isn’t all that different – is there much point?
Breaking down the Novae compensation plan, there’s no retail qualifiers so retail can be ignored entirely.
Pretty much all you have to do as a Novae affiliate is pay $99.95 a month. Recruit others who do the same and eventually you’ll start receiving a guaranteed monthly income check.
I’m not too sure what the point of separating some of that income as a lifestyle bonus was, but you’ll also receive that from the Gold Star rank.
By all means feel free to give Novae the benefit of the doubt, and check with your potential upline as to how many non-affiliates (retail customers) they have paying a subscription each month versus recruited affiliates.
We’ve already been down this road with WakeUpNow so you’re probably going to get a blank stare when you mention retail. Novae’s own compensation plan material doesn’t even differentiate between downline and retail commissions.
So intrinsic is the $99.95 subscription recruitment that they don’t even bother to explain any other weekly commission rates.
At the risk of sounding like a broken record, tread carefully… Novea is pretty much history repeating itself.
